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Questions 2 -through 4 are based on the following information. (E18-05) During its first year of operations, 'Eastern Data. Links Corporation entered into the following transactions relating to. shareholders' equity. The articles of incorporation authorized the issue of 8 million commonshares, $1 par per 'share, and 1 million preferred-shares, $50 par per share. $1 Feb. 12 Sold 2 million common shares, for $9 per share. 13 Issued 40,000 common shares to attorneys in exchange for legal services. - 13 Sold 80,000 of its common shares and 4,000 preferred shares for $945,000. Nov. 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000. - 2. How much is the increase 'in the total 'shareholders' equity' as 's a result of the abovetransactions?9 - A $18,945,000 - B. $22,500,000. - C. $22,993,000.5 - D. None of the above answers is correct. 9 3. The journal entry on'Feb. 13 ' to record the sale of common'shares and preferred shares: includes a credit-to:- A Paid-in Capital in Excess of Par-Preferred Stock account by $25,000.9 B. Preferred Stock account by $4,0001 C. Cashaccount by $945,000.9 D. None of the above answers is correct